The Pakistan Stock Exchange (PSX) witnessed a significant drop of over 1,900 points on Friday, as concerns rose over Israel's actions against Iran, leading to fears of broader regional conflict.

The benchmark KSE-100 index fell by 1,949.56 points, or 1.57 percent, closing at 122,143.56, down from the previous close of 124,093.12. Shares across the board experienced losses, reflecting a trend seen in other regional and global markets following the Israeli strikes that shook investor confidence.

According to a market analysis by Pakistani brokerage Topline Securities, geopolitical tensions arising from Israel's attack on Iran had a negative impact on global equities, including the KSE-100 index.

Raza Jafri, Head of Intermarket Securities, highlighted the potential risks associated with increased international oil prices due to the geopolitical situation. He mentioned that Pakistan's economic discipline, including the avoidance of fuel subsidies and judicious use of foreign exchange reserves, would help mitigate the impact of a possible oil price surge on the country's current account deficit and inflation.

Ahsan Mehanti, Chief Executive of Arif Habib Commodities Ltd, noted that the stock market decline was a response to the geopolitical tensions and a weakening rupee. Global market uncertainties and panic selling further exacerbated the situation at the PSX.

Israel's recent strikes on Iran, aimed at preventing the development of a nuclear weapon, targeted nuclear facilities, scientists, and military officials, leading to heightened tensions in the region.